Business
Half- Year Trading Update
Half- Year Trading Update.
About this update from Mpac Group Plc
[{"type":"text","content":"\n \nRNS Number : 9572U Mpac Group PLC 18 July 2018 \n\n18 July 2018\n \nMpac Group plc\n \nHalf- Year Trading Update\n \n \n \nMpac Group plc (\"Mpac\" or the \"Company\"), the global packaging solutions group, provides an update on current trading ahead of its unaudited interim results for the six months ended 30 June 2018 due to be announced in September 2018.\n \nMpac continues to make good progress towards achieving the Board's strategic objectives to build the foundations for future revenue growth.\n \nAs outlined at the time of the Company's final results, Mpac started the 2018 year with a higher order book and order intake than at the start of 2017. The Board believes the order book is also of higher quality and lower project complexity than previously as a result of the strategic objectives being put in place.\n \nDespite this positive start to the year and whilst we continue to grow revenues, it has become apparent to the Board the business climate has softened considerably as the year progressed attributable in part to general economic as well as Brexit related uncertainty, leading to customers deferring machinery investment decisions. The Board believes these contracts will be delivered in future financial years.\n \nMpac's financial performance during the first half has also been impacted by two significant, technically challenging legacy projects which will now not be completed until the end of the 2018 financial year. Management are working closely with customers to resolve these issues and to conclude these projects. However, the resulting cost overruns will have a material impact on the Company's profits for the current financial year.\n \nNotwithstanding these developments, the implementation of the stated strategic objectives has allowed the Company to achieve some significant efficiency gains in the first six months of the financial year. The benefits have been reduced by the time taken to change the location and management in our Mississauga facility in Canada, which has now been completed. In response to these factors, management has also taken further cost saving measures.\n \nAs a consequence of the above developments, the Board anticipates that whilst revenue for the full year is expected to be in line with market expectations, the ...